SE and Ltd - NIC continuity

Manu_Script

Hi,
I would like to understand this please. Thank you for the great forum
I have 2 questions:

1. I am self employed and tax resident in the UK. I am going to move to Europe. But I need self employment as sometimes I am earning money in UK. Am I obliged to close the SE?
2. I am thinking about setting my Ltd. where I will be a director and close my self-employment (or not to close, maybe I do not need). I have already paid 6 years for NIC class 2. I understand I will have to register for the PAYE as the Ltd. What if I have not enough income to pay the salary for me? Am I obliged to pay the salary? Or when it is very small. How to make my NIC payments continuous ( I need the continuity for my state pension)
3. When I decide to have both Ltd and SE, what are rules of paying NICs?

Thank you very much for your help and please correct me if I posted not to the right place, but this is a cross-subject

00ec25

your post covers a lot of scenarios which conflict with each other

1. I am self employed and tax resident in the UK. I am going to move to Europe.

so you will no longer be UK tax resident, and will instead be tax resident in whatever country you are going to.
You will need to learn how the double tax treaty works for that country
https://www.gov.uk/government/collections/tax-treaties

which country taxes your self employment depends, to an extent, on the nature of the work you do and obviously where you do it.

are you a UK or EC citizen? If yes you will (for now...) keep your UK personal allowance. If not, you won't.

2. I am thinking about setting my Ltd

do you mean you are thinking of setting up an Ltd Co, or do you mean you already have one?
if you are not resident in the UK it will be difficult to register a company as a UK company since the "management and control" will be exercised by you, and you do not live in the UK. You may end up having to register the company in whatever country you intend to move to.

What if I have not enough income to pay the salary for me?

as an employee of a company you expect to physically receive the money your payslip says the company is paying you! If the company does not have the cash to cover that payment then as director of the company you are at fault and should not be paying the company staff money that the company cannot afford. You will need to learn there is a big difference once you set up a company. The company is not you, and you are not the company. if the company cannot afford the payments then the salary cost will be disallowed and written back into the accounts for corporation tax purposes.

How to make my NIC payments continuous ( I need the continuity for my state pension)

for UK state pension purposes, as a company director there are NIC thresholds which mean a state pension credit is given even though no NI is physically paid by the director. This is the sort of question you should be seeking professional advice from an accountant for, also bearing in mind that if the company ends up being registered abroad then you need tax advice in that country also.

if you are both PAYe and SE then your NIC payments will be based on the respective NI thresholds.


Given your very obvious lack of basic knowledge you really must see an accountant. You cannot learn enough on your own to set up both a company and SE just by posting a few questions on an internet forum, especially if no longer UK resident for tax purposes.

Manu_Script

What does conflict?

Replying:
1. I am EC Citizen. What do you mean by “if not I won’t be able to keep my UK personal allowance?” Does it mean I will have to tax EVERYTHING after Brexit? As far as I know personal allowance for money you earn in UK is for everyone who works in UK?

2. I am self-employed. This is not Ltd Co. It is strange what you are saying because you are allowed to register Ltd in any country, as it is independent on your residency for tax purposes. If you want to register a company on Malta you can just do it.

3. “as director of the company you are at fault and should not be paying the company staff money that the company cannot afford.” This is clear. But my question was: Am i obliged to pay the salary for myself being a director every month? If not what about NIC that I want to pay continuously. What if I have a very small salary?

Manu_Script

I am not able to edit post on my phone. I will be anyway very often in UK- the company will be about music composing so I do not need to be there all the time

00ec25

go see an accountant, it would take pages to answer your questions properly and although your English is good, it is not good enough to understand short answers.

you are asking about both Se and a Ltd company. These conflict with each other in the context of someone who is not tax resident in the UK.

You may think you can register a company anywhere, but a company has to pass a statutory residency test before it can file and pay its tax in the UK. One of the tests is where does its director live and where is it controlled and managed from.

Answers to those sort of questions is where you need in depth professional advice from an accountant, not a few short lines on an internet forum